Policies aimed at lower income Canadians as Parliament resumes
Prime Minister Mark Carney will announce an increase to the GST/HST tax credit when Parliament resumes sitting today, according to reporting by CBC. If passed, quarterly tax credit payments will increase by 25 per cent over the next five years, which could impact around 12 million Canadians. The planned policy will also include what is being called the "Canada Groceries and Essentials Benefit" which, if passed, will be paid in June as a one-time 50 per cent top up to the GST credit. Federal estimates claim that a low-income single person would gain an additional $400 in 2026, a couple with two children would gain an extra $800.
CBC reports that the Carney government is facing pressure to adress grocery prices which has continued to rise at a pace far faster than headline inflation.
These measures will still require the support of at least two opposition members of parliament following the resignation of former Trudeau Finance Minister Christya Freeland. Conservative Leader Pierre Poilievre published a letter over the weekend saying his party would cooperate with the liberals on certain key issues, such as the expidited approval of major projects.
The GST/HST tax credit is a quarterly tax-free payment for individuals and families with "low or modest incomes," according to the 2024 definition the income cutoff fora single individual without children is $56,181 and $59,481 for a married/common law household with no children. That eligiblility rises to 74,201 for households with four or more children.
